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Bitcoin vs stocks: Why crypto dipped on PPI while S&P 500 hit record highs at 7,444

Bitcoin vs stocks: Why crypto dipped on PPI while S&P 500 hit record highs at 7,444
The April Producer Price Index print arrived like a thunderclap through otherwise complacent markets, registering a 1.4 per cent month-on-month increase and a 6.0 per cent year-on-year surge that dwarfed consensus expectations of 0.5 per cent and 4.9 per cent. This was not a gentle reminder of inflation’s persistence but a stark signal that wholesale price pressures remain deeply embedded across the services and energy sectors, with core PPI advancing 1.0 per cent month-on-month and 5.2 per cent year-on-year.

Bitcoin reacted with characteristic velocity, sliding from the low US$81,000 range to test US$78,704, briefly breaking below the psychologically critical US$80,000 threshold. That move, while modest in percentage terms for an asset known for volatility, triggered approximately US$94 million in Bitcoin long liquidations and roughly US$304 million in long liquidations across the broader crypto complex, compared to just US$71 million in shorts.

This asymmetry reveals a market structure in which leverage, rather than spot demand, often dictates short-term price action. When macro data shifts the narrative, overextended positions unwind sharply, and the resulting cascade can obscure the underlying fundamental picture.

What makes this episode particularly instructive is how directly macroeconomic signals now transmit into cryptocurrency markets. The hotter-than-expected PPI print reinforced expectations that the Federal Reserve may maintain a higher-for-longer interest-rate posture, potentially even reconsidering the timing of future rate cuts. Higher policy rates typically lift bond yields and strengthen the dollar, creating headwinds for risk assets that offer no yield and derive value from future adoption rather than current cash flows.

Bitcoin, despite its growing institutional acceptance, still trades with a high beta to liquidity expectations. The liquidation wave was not merely a technical event but a repricing of rate sensitivity among leveraged participants who had positioned for continued upside without adequately hedging against macro surprises.

This dynamic underscores a critical reality for crypto traders today. You are no longer just analysing on-chain metrics or network adoption. You are implicitly taking a view on inflation trajectories, central bank communication, and the real yield environment. The line between macro trading and crypto speculation has blurred, and those who ignore this convergence do so at their peril.

Interestingly, while Bitcoin absorbed selling pressure from the PPI shock, traditional equity benchmarks demonstrated remarkable resilience, even reaching new records. The S&P 500 gained 0.58 per cent to close at an all-time high of 7,444.25, while the Nasdaq Composite climbed 1.2 per cent to end at 26,402.34, propelled by strength in chipmakers and software names.

The Dow Jones Industrial Average lagged slightly, slipping 0.14 per cent to 49,693.20, but the broader risk appetite remained firmly intact. In Asia, the Straits Times Index extended gains past the 5,000 level, closing up 1.17 per cent at 5,003.96, while Nikkei 225 futures pointed positive near 63,490 as corporate buyback programmes accelerated.

This divergence between crypto and equities following the same inflation print highlights a nuanced market psychology. Equity investors appear to be weighing strong corporate earnings, such as Cisco Systems’ 14 per cent surge on a revenue beat and Blackstone Digital Infrastructure Trust’s US$2.0 billion IPO priced at US$20.00 per share, against macro headwinds.

Crypto traders, by contrast, remain more sensitive to the marginal change in liquidity expectations. The 10-year US Treasury yield surging toward 4.47 per cent, marking new 2026 highs, matters more to Bitcoin’s near-term direction than Alphabet’s 3.94 per cent gain or Tesla’s 3.24 per cent advance, however noteworthy those moves may be.

Bitcoin now trades within a decisive range between US$80,000 and US$82,000, where liquidation heatmaps show dense pockets of stops on both sides. A break below US$80,000 could trigger another wave of long liquidations, while a move above US$82,000 might squeeze shorts and fuel a rapid rebound. This knife-edge setup means that upcoming data releases will carry outsized influence.

The next Consumer Price Index and Personal Consumption Expenditures reports, along with any fresh commentary from Federal Reserve officials, will likely dictate whether the market interprets recent inflation as a temporary flare or a persistent trend. Geopolitical developments also warrant close attention, with global markets monitoring the Beijing meeting between US President Donald Trump and China’s Xi Jinping for signals on trade tariffs and supply chain stability.

In this environment, tracking open interest, funding rates, and liquidation levels becomes as important as analysing macro calendars. The market is not merely pricing in data but positioning for the volatility that data might unleash.

From my perspective, this episode reinforces a broader truth about the current phase of crypto market maturation. Bitcoin is no longer an isolated experiment but an integrated component of the global financial ecosystem, responsive to the same liquidity currents that move equities, bonds, and currencies. Its decentralised nature and finite supply introduce unique dynamics that traditional valuation frameworks struggle to capture.

Legacy regulatory constructs often miss the point when applied to networks that operate without central intermediaries. Similarly, treating Bitcoin purely as a risk-on asset overlooks its emerging role as a hedge against monetary debasement in certain jurisdictions.

The intelligence gap in Web3 persists not because the technology is immature, but because the analytical lens applied to it remains anchored in 20th-century paradigms. Traders who recognise this disconnect and build models that account for both macro sensitivity and network fundamentals will be better positioned to navigate the volatility ahead.

The path forward for Bitcoin will likely be determined by the interplay between sticky inflation, Federal Reserve policy, and the structural leverage embedded in derivatives markets. If inflation data continues to surprise to the upside, forcing a repricing of rate expectations, Bitcoin could face further pressure as real yields rise and the dollar strengthens.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Stocks hit record highs while US$300M in crypto longs get liquidated: What’s next?

Stocks hit record highs while US$300M in crypto longs get liquidated: What’s next?

While major US stock indexes closed at all-time highs, capping off their best monthly performance since 2020, the digital asset space is currently digesting a sharp, painful correction in leverage. This split personality in the market suggests that while institutional capital remains confident in the earnings power of megacap technology firms, speculative traders in the crypto derivatives market are being forced to reset their risk exposure.

The narrative of the day is not one of universal fear, but rather a selective rotation in which fundamental earnings in stocks are overpowering macroeconomic headwinds, while crowded speculative positions in crypto are being flushed out by technical resistance levels.

The cryptocurrency market experienced a significant deleveraging event over the last 24 hours, characterised by a violent flush of long positions. Data indicates that approximately US$326.71 million in leveraged positions were liquidated, with the overwhelming majority of this pain concentrated on the buy side. Specifically, US$285.87 million of these liquidations came from long positions, compared with just US$40.84 million from short positions. This means that roughly 87.5 per cent of the liquidated value resulted from traders betting on price increases who were forced out of their positions as prices dipped.

The brunt of this activity hit the two largest assets by market capitalisation. Ethereum saw roughly US$308.85 million in liquidations, while Bitcoin saw about US$204.96 million across major venues such as Binance, Hyperliquid, OKX, and Bybit. Some broader estimates place the total liquidation figure closer to US$500 million over a similar window, underscoring the intensity of the sell-off.

This liquidation cascade was not driven by a fundamental collapse in the value of these assets but rather by a technical failure at key resistance levels. Bitcoin has repeatedly failed to sustain a break above the US$77,000-US$80,000 range. This area has become a formidable ceiling where profit-taking by short-term holders meets dense clusters of leveraged long risk around the US$74,000 to US$75,000 levels.

When the price rejected this resistance, market mechanics triggered a cascade of margin calls, forcing traders to sell and driving prices further into the liquidation maps. Ethereum appeared even more technically fragile, trading below key moving averages and failing to hold resistance before rolling over. The result was a classic long squeeze, in which the market punished overly optimistic leverage rather than reflecting a change in the underlying spot demand for the assets.

In stark contrast to the volatility in digital assets, the traditional stock market rallied to record highs, driven by robust earnings reports that seem to justify lofty valuations. The S&P 500 and Nasdaq Composite posted their best monthly gains in six years, fueled by the continued dominance of megacap technology firms. Alphabet led the charge with a 10 per cent surge after reporting a strong Q1 revenue beat and announcing an aggressive capital expenditure guidance of up to US$190 billion for 2026.

Amazon also contributed significantly to the rally, reporting a 17 per cent revenue increase to US$181.5 billion and seeing its cloud computing division, AWS, accelerate growth to 28 per cent. Apple shares also rose in extended trading following a positive revenue forecast. These results suggest that despite high interest rates, the biggest tech companies are generating enough cash flow to support massive investment cycles.

The enthusiasm for artificial intelligence is not without its sceptics, even within the stock market. The same theme of AI capital expenditure that boosted Alphabet caused sell-offs in other tech giants. Meta Platforms and Microsoft fell 8.6 per cent and 3.9 per cent, respectively, as investors reacted negatively to disappointing user growth and the high memory costs associated with their massive AI spending. NVIDIA also dipped four per cent due to broader scrutiny regarding AI capital expenditures rather than any company-specific bad news.

This indicates a growing bifurcation in the tech sector where investors are beginning to demand proof of return on investment for the billions being poured into AI infrastructure. The market is no longer rewarding spending for the sake of spending. It is rewarding spending that translates into revenue growth, as seen with Amazon and Alphabet.

The macroeconomic backdrop for these divergent market moves remains complex and somewhat contradictory. The Federal Reserve kept interest rates on hold for a third straight meeting as inflation remained above the three per cent mark, a level that is still uncomfortably high relative to the central bank’s targets. Despite this, the US economy grew at a 2.0 per cent rate in Q1 2026, showing resilience that supports the stock market rally.

Geopolitical tensions are adding a layer of volatility that cannot be ignored. Brent crude oil settled near US$110 per barrel after surging past US$114 amid concerns over potential US strikes on Iran and the United Arab Emirates’ announced exit from OPEC. Additionally, currency markets saw wild swings, with the Japanese yen reaching 157.14 per dollar following a suspected intervention by the Ministry of Finance. These factors create an environment where capital is expensive and global stability is fragile, which helps explain why leverage in the crypto market is so vulnerable to sudden shocks.

Looking ahead, the derivatives market metrics will be the primary indicator of where volatility might spike next. Despite the recent wipeout of long positions, total derivatives open interest remains elevated at approximately US$493.1 billion, having risen roughly two to four per cent over the last day. Perpetuals open interest alone sits near US$489.52 billion.

Crucially, average funding rates have flipped modestly negative, signalling that traders are leaning more defensively after the flush. The key dynamic to watch is whether this open interest continues to fall, indicating deeper, healthier deleveraging, or if it quickly rebuilds near resistance levels. If leverage bleeds down while prices remain stable, it sets the stage for a sustainable move higher. If high leverage and positive funding rates return too quickly, the market risks another sharp squeeze in either direction.

The current market environment suggests a period of digestion and selection. The stock market is proving that earnings power can currently override macroeconomic fears, pushing indexes to new highs even as oil prices surge and the Fed holds rates steady. The crypto market, conversely, is undergoing a necessary technical reset.

The next phase of this cycle will depend on whether the AI spending boom continues to deliver the revenue growth seen by Amazon and Alphabet, or if the costs highlighted by Meta and Microsoft begin to weigh down the broader market. Until then, the divergence between record-high stocks and flushing crypto leverage defines the risk landscape of May 2026.

 

Source: https://e27.co/stocks-hit-record-highs-while-us300m-in-crypto-longs-get-liquidated-whats-next-20260501/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Dow hits record high, Nasdaq tumbles 0.6 per cent, Bitcoin miners flee: Signals deeper stress than price alone

Dow hits record high, Nasdaq tumbles 0.6 per cent, Bitcoin miners flee: Signals deeper stress than price alone

Investors processed unexpectedly soft retail sales data that simultaneously lifted hopes for Federal Reserve easing while exposing fragility across multiple asset classes. The Dow Jones Industrial Average managed a modest 0.1 per cent gain to establish a new record closing high. This narrow advance masked broader weakness as the S&P 500 declined 0.34 per cent to 6,941.33 and the Nasdaq Composite fell 0.6 per cent to 23,099.18. This divergence reflected a rotation away from technology and growth-oriented assets toward more defensive industrial names.

The fundamental catalyst, December retail sales, suggested a concerning loss of consumer momentum. Core sales dipped 0.1 per cent, contrary to expectations of expansion. This signalled that household spending power may have peaked by the end of 2025, with potential implications for fourth-quarter GDP growth calculations.

The bond market reacted decisively to the economic softening, with Treasury yields dropping sharply. The 10-year yield fell to approximately 4.14 per cent, its lowest level in a month. This move underscored how quickly market participants recalibrated their expectations for monetary policy. Money markets now price in elevated probabilities for three interest rate cuts during 2026. Federal Reserve officials, including Cleveland President Beth Hammack, emphasised that there is no immediate urgency for policy adjustments. This tension between market pricing and central bank communication created an undercurrent of uncertainty that permeated risk assets throughout the session.

Gold capitalised on the lower-yield environment, surging to consolidate above the psychologically significant US$5,000 per ounce threshold. Its non-yielding appeal has strengthened relative to fixed-income alternatives. WTI crude oil held steady near US$64.20 per barrel. Diplomatic developments in US-Iran negotiations supported prices by tempering fears of supply disruptions.

A noteworthy disruption emerged in the financial services sector, with shares of Charles Schwab and LPL Financial plummeting by at least seven per cent. Altruist Corp launched an AI-driven tax strategy tool, triggering broader anxiety about technological displacement across wealth management. This industry had long been considered relatively insulated from automation.

The severity of the reaction suggested investors recognised this as more than a niche competitive threat. It represented a potential inflection point for an entire professional services category. Global markets displayed their own complexities with Asian equities reaching an all-time high earlier in the trading day. South Korean strength led these gains, though Treasury trading remained subdued due to a Japanese market holiday. This limited cross-market feedback loops during a pivotal session.

The cryptocurrency market reflected these macro crosscurrents, declining 2.03 per cent to a total valuation of $2.35 trillion over the preceding 24 hours. This move exhibited a moderate 50 per cent correlation with the S&P 500. Digital assets increasingly moved in tandem with traditional risk sentiment rather than operating as an independent store of value. Beneath this surface correlation lay crypto-specific stressors of alarming magnitude. Bitcoin mining difficulty experienced its largest downward adjustment since 2021.

This signalled widespread miner capitulation as operational unprofitability forced network participants to shut down equipment. The exodus created direct selling pressure while simultaneously undermining confidence in the ecosystem’s foundational security layer. When those responsible for transaction validation and network integrity face existential financial pressure, the implications extend far beyond immediate price action.

Compounding this structural weakness, institutional capital continued its retreat from regulated Bitcoin exposure. Spot ETF assets under management contracted by US$13.6 billion within a single week, falling from US$110.92 billion to US$97.31 billion. This outflow represented a reversal of one of the primary drivers behind the previous bull market cycle. Derivatives markets experienced a violent deleveraging event, with open interest dropping 9.76 per cent in 24 hours.

Funding rates turned negative, triggering forced liquidations of overextended long positions. The convergence of miner distress, institutional withdrawal, and speculative unwinding created a self-reinforcing negative feedback loop. Each element amplified the others, producing cascading selling pressure across the digital asset landscape.

Technical indicators suggested the market was approaching an inflection point, with Bitcoin’s relative strength index plunging to 24.33. This indicated an oversold condition that historically precedes short-term bounces. The critical threshold rested at US$68,000, where a successful defence could catalyse a relief rally toward US$70,500.

A breakdown below this support level threatened to extend the downtrend significantly. The path forward depended on two key variables. ETF flows needed to reverse before additional miner selling emerged. The outcome of White House stablecoin legislation talks also mattered, with a policy deadline approaching at the end of February 2026. Regulatory clarity around stablecoin yields might provide the catalyst needed to restore institutional confidence, though timing remained uncertain.

The day ultimately revealed markets operating at an inflection point, with traditional and digital asset classes moving in concert yet retaining distinct vulnerability profiles. Traditional markets grappled with the contradiction between softening economic data and still hawkish central bank rhetoric. Crypto markets faced acute structural pressures at their operational core. The miner capitulation represented more than a price catalyst. It signalled stress at the very foundation of blockchain security models.

This moment of fragility also contained the seeds of potential renewal. Network difficulty adjustments have historically preceded major cycle bottoms by forcing inefficient participants out of the ecosystem. The coming weeks would test whether coordinated policy responses and technological adaptation could stabilise these interconnected markets.

Deeper recalibration might remain necessary before sustainable growth could resume. Investors now faced the challenge of distinguishing between temporary volatility and fundamental regime shifts across both traditional finance and its emerging digital counterpart.

The interplay among macroeconomic data points, technological disruption, and network-level stressors created a multifaceted environment that demands nuanced analysis rather than simplistic narratives. Market participants who recognised these layered dynamics stood better positioned to navigate the uncertain terrain ahead.

 

Source: https://e27.co/dow-hits-record-high-nasdaq-tumbles-0-6-per-cent-bitcoin-miners-flee-signals-deeper-stress-than-price-alone-20260211/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j